Core Viewpoint - AMD's latest financial report indicates that its profit performance fell short of market expectations despite a year-over-year revenue increase of 32% in Q2 2025, highlighting challenges in the AI chip market due to U.S. export restrictions [1][4]. Financial Performance - AMD reported Q2 2025 revenue of $7.69 billion, slightly exceeding market expectations of $7.42 billion [1]. - Adjusted earnings per share were $0.48, slightly below the expected $0.49 [1]. - Non-GAAP net profit was $781 million, a 31% year-over-year decline and a 50% decrease quarter-over-quarter [1]. Business Segment Performance - Data center business revenue, which includes server CPUs and GPUs, grew 14% year-over-year to $3.24 billion, slightly below the expected $3.25 billion, accounting for 42% of total revenue [1]. - The growth in the data center segment was primarily driven by strong demand for the EPYC CPU, partially offsetting the impact of export restrictions on the MI308 chip [1][4]. - Client business revenue increased 57% year-over-year to $2.5 billion, in line with expectations, driven by strong demand for the latest "Zen 5" architecture AMD Ryzen desktop processors [5]. - Gaming business revenue rose 73% year-over-year to $1.1 billion, benefiting from increased demand for semi-custom products and AMD Radeon GPUs [5]. - Embedded business revenue was $824 million, a 4% year-over-year decline, attributed to mixed demand in the end market [5]. Future Outlook - For Q3 2025, AMD expects revenue to be approximately $8.7 billion, with a year-over-year growth of about 28% and a quarter-over-quarter increase of about 13% [5]. - The gross margin is projected to be around 54%, with the outlook not including any revenue from the MI308 chip due to ongoing U.S. government review of export licenses [5].